International Accounting Standards

CAPIX is actively committed to ensuring that our software products comply with the new International Accounting Standards (IAS). In particular, there are two IAS which are of special relevance to treasury operations:

• IAS 32 - Financial Instruments: Disclosure and Presentation
• IAS 39 - Financial Instruments: Recognition and Measurement 

Overview

The economic and financial crisis which began in 1998 in certain Asian countries and spread to other regions of the world showed the need for reliable and transparent accounting and financial reporting to support sound decision-making by investors, lenders and regulatory authorities. 

In 1998, G7 Finance Ministers and Central Bank Governors committed themselves to endeavour to ensure that private sector institutions in their countries comply with internationally agreed principles, standards and codes of best practice. They called on all countries which participate in global capital markets similarly to commit to comply with these internationally agreed codes and standards. 

Many countries already endorse International Accounting Standards as their own either without amendment or else with minor additions or deletions. Furthermore, important developments are taking place in the European Union, where the European Commission is progressing proposals that will require all listed companies in the European Union to prepare their consolidated financial statements using International Accounting Standards. Already, both inside and outside the EU, many leading companies have stated that they prepare their financial reports in accordance with International Accounting Standards. 

CAPIX Software and IAS Compliance

CAPIX is committed to ensuring that it's software packages keep abreast of current user requirements. This includes that the software supports and is compatible with IAS, including:

• Identifying where a contract, or series of related contracts, should have Hedge or Equity accounting rules applied
• Recording specific details related to Hedge transactions
• Mark-to-Market revaluations of forward, long-term and derivatives contracts
• Automatically generating General Journal entries, according to IAS rules, for electronic import into corporate General Ledger systems 

Click here for more information about how CAPIX software can be used for IAS 39 compliance.